Planning Defined

● A systematic process of reaching a desired

state by establishing goals and formulating
strategies to achieve them
 Planning
● Planning involves selecting missions and
objectives and the actions to achieve them.
● Planning precedes any other managerial
function
● Plans need to be made utilizing the least of
the resources.
● Planning is required in each and every job
 How does a manager Plan?
Establish objectives
Develop Strategies
Determining planning
premises
Establish policies

Coordinate Develop program for

throughout the accomplishments
planning

Establish schedules
Develop preventive
and budgets
&/or contingent action

Identify potential
Establish procedures
problems
 Types of Plans

Specify actions to
7-3 Operational achieve tactical plans
Plans (very short-term)

Designed to implement
Tactical strategic objectives
Plans (usually one year or less)

Strategic Establish long-range

Plans objectives
 Advantages of
Planning
● Better coordination

● More efficient control of operation

● Easier delegation

● More economical use

● Better decision making

 Planning Decisions
● Anticipates the future, sets goals and objectives
and identifies the actions necessary for the
organization to attain these goals and objectives
● Determining where you want to go and how and
when you’re going to get there
● It involves specifying a target, a path or route to
be followed and a time schedule for achieving that
target
The Planning Process
The Environmental Context

The organization’s mission

• Purpose • Premises • Values • Directions

Strategic goals Strategic plans

Tactical goals Tactical plans

Operational goals Operational plans

Figure 7.18

Kinds of Goals for a
Regional Fast-Food
Chain
Vice president ñ operations
ï Open 150 new restaurants
during next ten years
ï Decrease food-container costs by
15 percent during next five years
ï Decrease average customer wait
by thirty seconds this year
Restaurant manager
ï Implement employee incentive
system within one year
ï Decrease waste by 5 percent this
year
ï Hire and train new assistant
manager
Figure 7.2
Mission: Our mission is to operate
a chain of restaurants that will
prepare and serve high-quality
food on a timely basis and at
reasonable prices.
Strategic Goals
President and CEO
ï Provide 14 percent return to
investors for at least ten years
ï Start or purchase new restaurant
chain within five years
ï Negotiate new labor contract
this year
Tactical Goals
Vice president ñ marketing Vice president ñ finance
ï Keep corporate debt to no more
ï Increase per store sales 5 percent
than 20 percent of liquid assets
per year for ten years
for next ten years
ï Target and attract two new market
ï Revise computerized accounting
segments during next five years
system within five years
ï Develop new promotional
ï Earn 9 percent on excess cash this
strategy for next year
year
Operational Goals
Advertising director Accounting manager
ï Develop regional advertising ï Split accounts receivable/payable
campaigns within one year functions from other areas within
ï Negotiate 5 percent lower two years
advertising rates next year ï Computerize payroll system
ï Implement this yearís for each restaurant this year
promotional strategy ï Pay all invoices within thirty days
9
 Contingency Planning

Ongoing planning process

Action point 1 Action point 2 Action point 3 Action point 4

Develop plan, Implement plan and Specify indicators Successfully complete
considering formally identify for the contingency plan or contingency
contingency events contingency events events and develop plan
contingency plans for
each possible event

Monitor contingency event indicators and

implement contingency plan if necessary

Figure 7.3 10
Developing and Executing Tactical
Plans
Developing tactical plans
• Recognize and understand
overarching strategic plans
and tactical goals
• Specify relevant resource and
time issues
• Recognize and identify human
resource commitments
Executing tactical plans
• Evaluate each course of action
in light of its goal
• Obtain and distribute
information and resources
• Monitor horizontal and vertical
communication and integration
of activities
• Monitor ongoing activities for
goal achievement
Figure 7.411
 Types of Operational Plans

Plan Description

Single-use plan Developed to carry out a course of action not likely to

be repeated in the future
Program Single-use plan for a large set of activities
Project Single-use plan of less scope and complexity than a
program

Standing plan
Policy
Standard operating procedure
Rules and regulations
Developed for activities that recur regularly over a pe-
riod of time
Standing plan specifying the organization’s general
response to a designated problem or situation
Standing plan outlining steps to be followed in particu-
lar circumstances
Standing plans describing exactly how specific activi-
ties are to be carried out

Table 7.112
 Barriers to Goal Setting and
Planning
Major Barriers Inappropriate goals
Improper reward system
Dynamic and complex environment
Reluctance to establish goals
Resistance to change
Constraints

Overcoming the Barriers Understanding the purposes of goals and planning

Communication and participation
Consistency, revision, and updating
Effective reward systems

Table 7.213
 Formal Goal-Setting Process

Starting Establishment Communicat-

Collaborative
the formal of organiza- ing organiza- Periodic Evaluation
goal setting
goal-setting tional goals tional goals review
and planning
program and plans and plans

Meeting

Verifiable
goals and
clear plans

Counseling

Resources

Figure 7.514
 SWOT Mission
An organization’s fundamental purpose
Analysis
SWOT Analysis
● Strengths To formulate strategies that support the mission
● Weaknesses
Internal Analysis External Analysis
● Opportunities Strengths Opportunities
(distinctive
● Threats competencies)

Weaknesses Threats

Good Strategies
Those that support the mission and
• exploit opportunities and strengths
• neutralize threats
• avoid weaknesses

Figure 8.115
 Porter’s Generic Strategies

Strategy Type Definition Examples

Differentiation Distinguish products or Rolex (watches)

services Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett-Packard (hand -held calcul ators)

Overall cost leade rship Reduce manufactu ring Timex

and other costs Hyundai
Kodak
Bic
Texas Instruments

Focus Concentrate on specific Tag Heuer

regional market, product Fiat, Alfa Romeo
market, or group of bu y- Polaroid
ers Waterman Pens
Fisher Price

Table 8.116
 The Miles and Snow Topology

Strategy Type Definition Examples

Prospector Is innovative and growth oriented, Amazon.com

searches for new markets and new 3M
growth opportunities, encourages Rubbermaid
risk taking

Defender Protects current markets, main- Bic

tains stable growth, serves current eBay.com
customers Mrs. Fields

Analyzer Maintains current markets and Dupont

current customer satisfaction with IBM
moderate emphasis on innovation Yahoo

Reactor No clear strategy, reacts to International Harvester

changes in the environment, drifts (in the 1960s and 1970s)
with events Joseph Schlitz Brewing Co.
W. T. Grant

Table 8.217
 The Product Life Cycle

High Stages

Introduction Growth Maturity Decline

Sales Volume

Low
Time

Figure 8.218
 Related Diversification

Basis of Relatedness Examples

Similar technology Phillips, Boeing, Westinghouse, Compaq

Common distribution and marke ting skills RJR Nabisco, Phillip Morris, Procter & Gamble

Common name brand and reput ation Disney, Universal

Common customers Merck, IB M, AMF -Head

Table 8.319
 The BCG Matrix
High

Question
Stars
Market growth rate

marks

Cash cows Dogs

Low
High Relative market share Low

Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by permission

from The Boston Consulting Group, Inc., 1970. Figure 8.320
 The GE Business Screen
Question
High Winner Winner
mark
Industry growth rate

Average
Medium Winner Loser
business

Profit
Low Loser Loser
producer

Good Medium Poor

Competitive position

Competitive position Industry attractiveness

1. Market share 1. Market growth
2. Technological know-how 2. Market size
Source: From Strategy Formulation: Analytical 3. Product quality 3. Capital requirements
Concepts, by Charles W. Hofer and Dan
Schendel. Copyright 1978 West Publishing. 4. Service network 4. Competitive intensity
Used by permission of South-Western College
Publishing, a division of International Thomson 5. Price competitiveness
Publishing, Inc., Cincinnati, Ohio, 45227.
6. Operating costs
Figure 8.421
Decision-Making Conditions

The decision
maker faces
conditions of...

Certainty Risk Uncertainty

Level of ambiguity and chances of making a bad decision

Lower Moderate Higher

Figure 9.122
 The Classical Model of Decision
Making

• obtain complete
. . . and end up with
When faced with a and perfect information
a decision that best
decision situation, • eliminate uncertainty
serves the interests
managers should . . . • evaluate everything
of the organization.
rationally and logically

Figure 9.223
 Steps in the Rational
Decision-Making Process
Step Detail
1. Recognizing and Some stimulus indicates that a
defining the dec ision decision must be made. The
situation stimulus may be positive or
negative.
2. Identifying a lterna- Both obvious and creative
tives alternatives are desired. In
general, the more impo rtant
the decision, the more altern a-
tives should be co nsidered.
3. Evaluating alt erna- Each alternative is evaluated
tives to determine its feasibility, its
satisfactoriness, and its
consequences.
Example
A plant manager sees that
employee turnover has i n-
creased by 5 percent .
The plant manager can i n-
crease wages, increase ben e-
fits, or change hiring sta n-
dards.
Increasing benefits may not be
feasible. Increasing wages and
changing hiring standards may
satisfy all conditions.
Table 9.1a24
 Steps in the Rational
Decision-Making Process (cont’d)
Step Detail
4. Selecting the best Consider all situational factors,
alternative and choose the alternative that
best fits the manager’s
situation.
5. Implementing the The chosen alternative is
chosen alternative implemented into the
organizational system.
6. Following up and At some time in the future, the
evaluating the manager should ascertain the
results extent to which the alternative
chosen in step 4 and
implemented in step 5 has
worked.
Example
Changing hiring standards will take
an extended period of time to cut
turnover, so increase wages.
The plant manager may need
permission from corporate
headquarters. The human resource
department establishes a new wage
structure.
The plant manager notes that, six
months later, turnover has dropped
to its previ ous level.
Table 9.1b25
 Evaluating Alternatives in the
Decision-Making Process

Are the alternative’s

Is the alternative Is the alternative Retain for further
Yes Yes consequences Yes
feasible? satisfactory? consideration
affordable?

No No No

Eliminate from Eliminate from Eliminate from

consideration consideration consideration

Figure 9.326
 The Administrative Model of
Decision Making

• use incomplete and

. . . and end up with a
When faced with a imperfect information
decision that may or may
decision situation • are constrained by
not serve the interests
managers actually… bounded rationality
of the organization.
• tend to satisfice

Figure 9.427
 Advantages and Disadvantages of
Group and Team Decision Making

Advantages Disadvantages

1. More information and knowledge
are available.
2. More alternatives are likely to be
generated.
3. More acceptance of the final
decision is likely.
4. Enhanced communication of the
decision may result.
5. Better decisions generally
emerge.
1. The process takes longer than indi-
vidual decision making, so it is cost-
lier.
2. Compromise decisions resulting from
indecisiveness may emerge.
3. One person may dominate the group.
4. Groupthink may occur.

Table 9.228
 STRATEGIC
MANAGEMENT
The word “Strategy” is
originated from a Greek
word “Strategos”

Which means –
“Generalship”
Strategic Thinking and
Planning helps in
achieving:

Firms Performance
Financial Success
● Strategic planning has taken on new
importance in today’s world of
globalization, deregulation, advancing
technology, and changing demographics
and lifestyles.
● Managers are responsible for
positioning their organizations for
success in a world that is constantly
changing.
● Strategic Management is nothing
but to put Strategic Planning into
action.
 What is
Strategic Management?

Strategic Management is the set

of decisions and the actions used
to formulate and implement
strategies that will provide a
competitively superior fit between
the organization and its
environment so as to achieve
organizational goals.
 Managers ask questions
such as:
● What changes and trends are occurring in
the competitive environment?
● Who are our customers? (Customer Group)
● What products or services should we offer?
(Customer Functions)
● How can we offer those products and
services most efficiently? (Alternative
Technology)
HIERARCHY APPROACH
M I S S I O N

O B J E C T I V E S

G O A L S

S W O T

S T R A T E G Y

S T R U C T U R E

M A N A G E M E N T
C O N T R O L
 GRAND
STRATEGY
Grand strategy is the general plan of
major action by which a firm intends to
achieve its long-term goals. Grand
strategies fall into three general
categories –

Growth Strategy
Stability strategy
Retrenchment Strategy
 Growth Strategy
Growth can be promoted internally by
investing in expansion or externally by
acquiring additional business divisions.
Internal growth can include development
of new or changed products or markets.

For Example – Companies planning to go

to Rural Markets.
External growth typically involves
diversification, which includes the
acquisition of business that are related
to current product lines or that take the
corporation into new areas.
For Example – Coca –cola when came to
India acquired Thumps up.
 Stability strategy
Stability, sometimes called a pause
strategy, means that the
organization wants to remain the
same size or grow slowly and in a
controlled fashion.
For example – Providing Better
After-sales service.
 Retrenchment Strategy
Retrenchment means that the organization
goes through a period of forced decline by
either shrinking current business units or
selling off or liquidating entire businesses.
Liquidation means selling off business unit for
the cash value of the assets, thus terminating
its existence. Divestiture involves the selling
off of business that no longer seem central.
Retrenchment is also called as downsizing.
 GLOBAL
STRATEGY
Many Companies may pursue a
separate grand strategy as the
focus of global business. The grand
strategy of growth is a major
motivation for both small and large
businesses going international.
 Types of Global
Strategies
● Globalization Strategy
● Multi-domestic Strategy

● Transnational Strategy
 Globalization Strategy
When an organization chooses a
strategy of globalization it means that
its product design and advertising
strategies are standardized throughout
the world. This approach is based on
the assumption that a single global
market exists for most consumer and
industrial products. Globalization
enables marketing departments alone
to save millions of dollars. For example
– Nike.
 Multi-domestic Strategy
When an organization chooses a multi-
domestic strategy, it means that
competition in each country is handled
independently and the organization is present
in many countries.
Thus, a multinational company is present in
many countries, but it encourages marketing,
advertising, and product design to be
modified and adapted to the specific needs of
each country. Many companies reject the idea
of a single global market. For example –
Pepsi, Nestle.
 Transnational Strategy
A transnational strategy seeks to achieve
both global integration and national
responsiveness. A true transnational
strategy is difficult to achieve, because one
goal requires close global co-ordination while
the other goal requires local flexibility.
Increased competition means they must
achieve global efficiency. But, growing
pressure to meet local needs demands
national responsiveness.
Example - Unilever
PURPOSE OF
STRATEGY
In an organization, executives define
 An explicit strategy
 Which is the plan of action
 That describes resource allocation
and activities
 For dealing with the environment
 And attaining the organization’s
goals.
 Core Competence
 A company’s core competence is
something the organization does
especially well in comparison to its
competitors.
 A core competence represents a
competitive advantage because the
company acquires expertise that
competitors do not have.
 A core competence may be in the area of
superior research and development,
mastery of a technology, manufacturing
efficiency, or consumer service.
 For example - ONGC
 Synergy
 When organizational parts interact to
produce a joint effect that is greater than
the sum of the parts acting alone, synergy
occurs.
 The organization may attain a special
advantage with respect to cost, market
power, technology, or management skill.
 When properly managed, synergy can
create additional value with existing
resources, providing a big boost to the
bottom line.
 Synergy also can be obtained by good
relations between suppliers and customers
and by strong alliances among companies.
 For Example – Balaji Telefilms
 Value Creation
 Exploiting core competencies and
attaining synergy help companies create
value for their customers.
 Value can be defined as the combination
of benefits received and costs paid by the
customer.
 A product that is low in cost but does not
provide benefits is not a good value.
 Delivering value to the customer should
be at the heart of strategy.
 Example – McDonalds Extra Value Meals
LEVELS OF
STRATEGY
● Corporate-level strategy.

● Business-level strategy.
● Functional-level strategy.
 Levels of Strategy
C o r p o r a t e L e v
S t r a t e g y

B u s i n e B s su s L i en ve Bes lsu s L i en ve es
S t r a t e g Sy t r a t e g Sy t r a t e g
A B C

F i n a n M c ae r k eO t pi n e g r a P t ei o r ns so
 Strategy Formulation

It is the stage of strategic

management that involves the
planning and the decision making
that lead to the establishment of
the firm’s goals and the
development of a specific strategic
plan.
 Strategic Implementation

This is the stage of strategic

management that involves the use
of managerial and organizational
tools to direct resources toward
accomplishing strategic results.
FORMULATION IMPLEMENTATION

C o r p o r a t e L e v e
S t r a t e g y

B u s
i n B e u s s i n L B e e u s v s e i ln L e e s v s e lL
S t r a t e S g t yr a t e S g t yr a t e g y
A B C

F i n a M n ac er Ok e p t ei n P r g a e t ir o s no sn n
 STRATEGIC
MANAGEMENT
PROCESS
● Situation Analysis
– Internal Strengths & Weakness
– External Opportunities &
Threats
● Redefine the mission or goals
● Implementation
 Scan External Identify
Environment Strategic
National factors
Global Opportunities
Threats

Implement
Formulate Strategy via
Define New: Strategy: Changes in:
Mission
Evaluate Goals Corporate Leadership/
Current: Business Culture
Grand
Mission Structure
SWOT Strategy Functional
Goals Human
Strategies Resources
Information and
Control Systems

Scan Internal
Environment Identify
Core Strategic
Competence Factors:
Synergy Strengths
Value Creation Weaknesses
 Situation Analysis

● SWOT Analysis
● Globalization

● Sources of Information
 Checklist for analyzing
Organizational Strengths
and Weakness
● Management and Organization
● Marketing
● Human Resources
● Finance
● Production
● Research and Development
 What is SWOT Analysis?
● SWOT Analysis is an important planning tool
that helps a Person or an Institution identify, in
a systematic and organized way, its internal
strengths/weakness
● Helps it match these strengths/weaknesses
with the opportunities or threats in the
environment.
 What is Organization’s SWOT ?
S W O T for a organization’s strategy to be
well conceived, it must be matched to both
● Taking advantage of its internal strengths

while defending against its weaknesses

● Identifying the best market opportunities

and minimizing external threats to its well-

being
 Identifying Resource Strengths
and Competitive Capabilities
� A strength is something a firm does well or a characteristic that
enhances its competitiveness
� Valuable competencies or know-how
� Valuable physical assets
� Valuable human assets
� Valuable organizational assets
� Valuable intangible assets- e.g. “Image”
� Important competitive capabilities
� An attribute that places an organization in a position of competitive
advantage
� Alliances with capable partners
 Identifying Resource Strengths
and Competitive Capabilities
Resource strengths and competitive
capabilities are competitive assets !
 Identifying Resource Weaknesses
and Competitive Deficiencies

� A weakness is something a firm lacks, does poorly, or a condition

placing it at a disadvantage
� Resource weaknesses relate to
� Deficiencies in know-how or expertise or competencies
� Lack of important physical, organizational, or intangible assets
� Missing capabilities in key areas

Resource weaknesses and deficiencies are

competitive liabilities !
 SWOT Analysis: What to Look For
Potential Resource Strengths
Powerful strategy
Strong financial condition
Strong brand name
image/reputation
Widely recognized as market
leader
Higher overall costs than rivals
Proprietary technology
Cost advantages
Strong communications
Product innovation
Good customer service
Better product quality
Alliances or JVs
Potential Resource Weaknesses
No clear strategic direction
Obsolete facilities
Weak balance sheet; excess debt
Missing some key skills/
competencies
Internal operating problems
Falling behind in R&D
Weak marketing and
communications skills
Too narrow product line
 SWOT Analysis: What to Look For (Cont)
Potential Resource Opportunities
Serving additional “customer”
groups
Expanding to new geographic areas
Expanding product line
Transferring skills to new products
or services
Vertical integration
Take market share from rivals
Alliances or acquisitions
Openings to exploit new
technologies
Openings to extend brand
name/image
Potential Resource Threats
Entry of potent new competitors
Substitute products or services
Slowing market growth
Adverse shifts in political or
economic conditions
Costly new regulations
Growing leverage of customers or
suppliers
Reduced buyer needs for product or
services
Demographic changes
 Tools for Strategy Formulation

SWOT ANALYSIS

Internal Strengths Weaknesses

External Opportunities Threats

Build on your
Strengths

Recognise your
Weakness

Evaluate your
Opportunities Research your
Threats
 Tools for Strategy Formulation

� SO Strategies: Use strengths to take advantage of

Opportunities
� WO Strategies: Overcome weaknesses to take
advantage of Opportunities
� ST Strategies: Use Strengths to avoid Threats
� WT Strategies: Minimize Weaknesses and avoid
Threats
 Do your SWOT Analysis
● Identify Traits within yourself.
● Synergize your traits with people traits.
● Do not let a particular trait dominate your
style.
● Build on your Strengths, Dilute your
Weaknesses, Exploit the Opportunities, Avoid
the Threats.
 Planning Defined
● Defining the organization’s objectives or goals
● Establishing an overall strategy for achieving
those goals
● Developing a comprehensive hierarchy of
plans to integrate and coordinate activities

Planning is concerned with ends (what is to be done) as

well as with means (how it is to be done).

81
Reasons for
Planning

EXHIBIT 3.1
82
 Criticisms Of Formal Planning
● Planning may create rigidity.
● Plans can’t be developed for a dynamic
environment.
● Formal plans can’t replace intuition and
creativity.
● Planning focuses managers’ attention on
today’s competition, not on tomorrow’s
survival.
● Formal planning reinforces success, which
may lead to failure.
83
 Planning and Performance
● Formal planning generally means higher
profits, higher return on assets, and other
positive financial results.
● Planning process quality and implementation
probably contribute more to high performance
than does the extent of planning.
● When external environment restrictions
allowed managers few viable alternatives,
planning did not lead to higher performance.

84
 Types of Plans

BREADTH TIME SPECIFICITY FREQUENCY OF

USE FRAME OF USE

Strategic Long term Directional Single use

Tactical Short term Specific Standing

EXHIBIT 3 .2
85
 Planning: Focus and Time
● Strategic plans
– Plans that are organization-wide, establish overall
objectives, and position an organization in terms
of its environment
● Tactical plans
– Plans that specify the details of how an
organization’s overall objectives are to be
achieved
● Short-term plans
– Plans that cover less than one year
● Long-term plans
– Plans that extend beyond five years
86
 Strategic Planning
● Strategic plans
– Apply broadly to the entire organization
– Establish the organization’s overall objectives
– Seek to position the organization in terms of its
environment
– Provide direction to drive an organization’s efforts
to achieve its goals.
– Serve as the basis for the tactical plans.
– Cover extended periods of time
– Are less specific in their details

87
 Tactical Planning
● Tactical plans (operational plans)
– Apply to specific parts of the organization.
– Are derived from strategic objectives
– Specify the details of how the overall objectives
are to be achieved.
– Cover shorter periods of time
– Must be updated continuously to meet current
challenges

88
Directional versus Specific Plans

EXHIBIT 3 .3
89
 Specific and Directional Plans
● Specific plans
– Plans that have clearly defined objectives and
leave no room for misinterpretation
● “What, when, where, how much, and by whom”
(process-focus)
● Directional plans
– Flexible plans that set out general guidelines
● “Go from here to there” (outcome-focus)

90
 Single-Use and Standing Plans
● Single-use plans
– A plan that is used to meet the needs of a
particular or unique situation
● Single-day sales advertisement
● Standing plan
– A plan that is ongoing and provides guidance for
repeatedly performed actions in an organization
● Customer satisfaction policy

91
● Management
Management by Objectives
by Objectives (MBO)
– A system in which specific performance
objectives are jointly determined by subordinates
and their supervisors, progress toward objectives
is periodically reviewed, and rewards are
allocated on the basis of that progress.
– Links individual and unit performance objectives
at all levels with overall organizational objectives
– Focuses operational efforts on organizationally
important results.
– Motivates rather than controls

92
Cascading of Objectives

EXHIBIT 3.4
93
 Elements of MBO
● Goal specificity
● Participative decision making
● Explicit time period for performance
● Performance feedback

94
 Setting Employee Objectives
● Identify an employee’s key job tasks.
● Establish specific and challenging goals for
each key task.
● Allow the employee to actively participate.
● Prioritize goals.
● Build in feedback mechanisms to assess goal
progress.
● Link rewards to goal attainment.

95
 Strategic Management
● Strategic Management Process
– A nine-step process that involves strategic
planning, implementation, and evaluation
● The organization’s current identity
– Mission statement
● Defines the purpose of the organization
– Objectives
– Strategic plan
● A document that explains the business founders vision
and describes the strategy and operations of that
business.

96
The Strategic Management Process

EXHIBIT 3.5
97
 Analyze the Environment
● Environmental scanning
– Screening large amounts of information to detect
emerging trends and create a set of scenarios
● Competitive intelligence
– Accurate information about competitors that
allows managers to anticipate competitors’
actions rather than merely react to them

98
 SWOT: Identifying
Organizational
Opportunities

SWOT analysis
Analysis of an organization’s strengths,
weaknesses, opportunities, and threats in order
to identify a strategic niche that the organization
can exploit
EXHIBIT 3.6
99
 SWOT Analysis
● Strengths (strategic)
– Internal resources that are available or things that an
organization does well
● Core competency: a unique skill or resource that represents

a competitive edge
● Weaknesses
– Resources that an organization lacks or activities that it does not
do well
● Opportunities (strategic)
– Positive external environmental factors
● Threats
– Negative external environmental factors

100
101